Financial Markets Daily Report 12 December 2022
Investors continued to trade with caution during the last session of the week. In the US, a stronger-than-expected rise in PPI inflation (0.3% m/m and 7.4% y/y in November) triggered a pickup in sovereign bond yields and a decline in stock indices, as investors reassessed their expectations for monetary policy ahead.
- Investors continued to trade with caution during the last session of the week. In the US, a stronger-than-expected rise in PPI inflation (0.3% m/m and 7.4% y/y in November) triggered a pickup in sovereign bond yields and a decline in stock indices, as investors reassessed their expectations for monetary policy ahead.
- In Europe, sovereign bond yields also went up across the board, more notably in the periphery, while stock indices recovered modestly. The EUR continued to fluctuate around 1.05 against the USD.
- Elsewhere, oil prices remained broadly flat, trading at the lowest level since the start of the year, with the focus on the demand outlook for China. Natural gas prices ticked up amid plummeting temperatures in the north hemisphere.
- This week, the focus will be on the monetary policy decisions by the Fed (Wednesday), ECB and Bank of England (Thursday). On Tuesday, CPI inflation for November is released in the US while the flash PMIs are published on Friday.